(815 ILCS 645/13) (from Ch. 29, par. 60.3)
Sec. 13.
Preopening sales escrow.
(a) All moneys received by a physical
fitness center pursuant to contracts for physical fitness services prior
to the full operation of such center shall be placed in escrow. Such funds
shall be kept and maintained in an account separate and apart from any account
maintained for the physical fitness center's use or for use in the construction
or operation of the physical fitness center or for the payment or benefit
of employees of the physical fitness center. Such escrow account shall
be established in a bank or trust company doing business in this State.
(b) The escrow account shall provide that the purpose of the account is to
protect customers in the event that the physical fitness center fails to
substantially complete and open the facility within one year following
establishment of the account. Any customer who has paid money which is on
deposit in the escrow account may maintain a representative action to close the
account and to release such moneys pro rata to all customers similarly situated
if such physical fitness center has not been substantially completed and
opened within one year of establishment of the account.
(c) A monthly statement of the escrow account is to be furnished to customers
who have advanced
funds or obligations until such account is closed in accordance with this Section.
(d) The escrow account shall be released by the escrow agent to the physical
fitness center not less than thirty days nor more than sixty days following
the completion of construction of the proposed physical fitness center as
evidenced by (1) a certificate of an architect licensed in this State or
a certificate of occupancy issued by the municipality or county where the
physical fitness center is located, and (2) a contractor's statement and
waivers of liens
as to all suppliers of materials and services for the construction of the
physical fitness center.
(e) In lieu of the escrow required by this Section, the physical fitness
center may furnish such evidence as the Attorney General may require, executed
under penalty of perjury by an officer or owner of the physical fitness
center, which reasonably demonstrates sufficient financial responsibility
to enable the physical fitness center to satisfy all possible claims in
the event that the facility or services are not timely provided.
In determining whether the physical fitness center has the requisite
financial responsibility, the Attorney General may consider the operating
and business history and reputation of the physical fitness center and its
management within and without the State as well as the operating and business
history and reputation of any business or corporation controlled by, under
common control with, or controlling the physical fitness center.
(Source: P.A. 82-346.)
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